EE loses customers ahead of 4G

Orange and T-Mobile operator has EE revealed a drop in overall customer numbers ahead of its launch of superfast 4G services.

The company's total base fell 2.1% year-on-year to 26.9 million in the three months to September 30 after it lost 393,000 pay-as-you-go customers and added 250,000 contract deals.

However, contract customers bring in average revenue per user (ARPU) five times higher than pay-as-you-go deals, which helped service revenues rise 3.1%.

The results are the last to be published before EE becomes the only operator in the UK to offer 4G services, which will launch next Tuesday.

EE said 51% of its customers are now on contract or "post paid" agreements, while the decline in pay-as-you-go deals was in line with industry trends.

Some 80% of EE's contract customers are on two-year contracts, up from 70% a year ago.

A total of 74% of EE customers now have a smartphone, such as Apple's iPhone, up from 72% in the previous quarter and 65% in the same quarter of last year.

The increase in smartphone use saw non-messaging data revenues increase to 31% of total ARPU, compared to 23% last year, while non-voice revenues, data and messaging, is at 48% of total ARPU.

Fixed broadband recorded 12% year-on-year revenue growth with 9,000 net customer additions, EE said, with 97% of new broadband customers also taking line rental.

EE, formerly known as Everything Everywhere, will launch its range of 4G products and services on Tuesday in London, Bristol, Birmingham, Cardiff, Leeds, Sheffield, Edinburgh, Glasgow, Liverpool and Manchester.